These are the methods I read for accounting for a salary sacrifice. Question with Method 2, does this mean we have to refund the employee back for the GST component via Payroll? What does 'gives it the employee' imply?
"There're 3 different methods you can use to account for GST.
Method 1 is where the employee salary sacrifices an amount equal to the GST exclusive price. The employer pays GST when the good is purchased and claims it back on their business activity statement, (BAS).
Method 2, the employee salary sacrifices the GST inclusive price. The employer pays, including GST for the good and gives it to the employee. GST credits can be claimed on a BAS.
Method 3, An external salary sacrifice provider is used.
A portable electronic device is exempt from FBT."
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